Beer bills get a round of ayes in Texas House

Published 8:42 pm, Friday, May 17, 2013

Texans could buy and drink a beer at their local brewery under a five-pack of bills given preliminary approval Friday by the Texas House of Representatives.

In another significant change for the industry, the legislation would give brew pub owners the right to sell some of the beer they make in their restaurants to bars, stores and other retailers.

Results of the voice vote on the five related bills drew applause when they were announced. Scott Metzger, owner of Freetail Brewing Co. in San Antonio who worked closely with lawmakers on behalf of the Texas Craft Brewers Guild, tweeted “we did it!” from the House gallery.

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The bill faces a third and final vote, likely on Monday, before it heads to Gov. Rick Perry for his signature or veto.

Rick Donley, president of the Beer Alliance of Texas, one of two major wholesaler groups in the state, has said representatives of the governor's office have attended key meetings during the yearlong process of crafting and making compromises on the bills.

The legislation is considered the most significant for the beer industry since 1993, when the state authorized brew pubs that could make and sell their own beer on-site.

Craft brewers have pushed hard for the changes as a way to help the fast-growing industry.

Metzger, whose business would benefit from the changes affecting brew pubs, conducted an analysis for the Craft Brewers Guild estimating that Texas could add 52,000 jobs and build a $5.6 billion brewing industry by 2020 if laws were amended.

But the package approved Friday also includes a compromise that angered some brewers, at least initially.

At the request of the Wholesale Beer Distributors of Texas, the state's other major distributors group, one bill would forbid breweries from receiving cash payments for exclusive distribution rights, although it would allow the wholesalers to make some investments in the breweries they represent.

This measure was roundly criticized by brewers, the Beer Alliance, business groups and a conservative policy group when it was raised in committee. But the committee chairman, state Sen. John Carona, R-Dallas, ordered the parties to work out a deal.

A version of the measure was included in the package that passed the Senate and was voted on Friday in the House.

A binding agreement signed by the interested parties as the compromises were worked out states that if any of the five bills fails to become law, all five will fail.